Our Take on the 2025 Real Estate Market Forecast for Kansas City

As 2024 comes to an end, at Dani Beyer Real Estate, we are feeling both grateful for the year and hopeful for what’s ahead. In 2024, Kansas City saw the least amount of homes sold in a decade. However, we saw our largest sales volume ever at Dani Beyer Real Estate with over 80 million dollars in sales! In addition, our listings sold, on average, for over 2% of the market average. As we look to the 2025 real estate market forecast for Kansas City, we expect to see significant developments. With promising trends in home sales, prices, construction and overall market attractiveness, Kansas City is set to remain a hotspot for both buyers and investors. Here’s a detailed forecast of what’s to come:

Rebound in Home Sales

After a period of stabilization, home sales in Kansas City are forecasted to rebound in 2025. According to the Wichita State University Center for Real Estate, total home sales (on the Kansas side) are projected to increase by 4.4%, reaching approximately 36,300 units. This marks a positive shift and reflects growing consumer confidence in the market.

Steady Growth in Home Prices

Home price appreciation will likely continue, albeit at a more moderate pace compared to the rapid rises seen in previous years. The WSU Center for Real Estate anticipates a 5.6% increase in home values for 2025. This follows a 6% rise in 2024, suggesting a steady trajectory that balances affordability and investment potential.

Modest Growth in Construction Activity

New construction is expected to see modest growth, with a 0.7% increase in single-family building permits, totaling 4,465 units in 2025. This uptick in construction activity signals an effort to address the ongoing demand for housing and maintain market balance. 

Kansas City: A Top Market to Watch

The National Association of Realtors (NAR) has identified Kansas City as one of the top 10 U.S. housing markets to watch in 2025. This designation is attributed to factors such as job growth, affordability and competitive financing options. With mortgage rates stabilizing around 6% and increased housing inventory, the market is poised to provide better opportunities for homebuyers. In addition, due to median home prices, many millennials are able to own in the metro. 

Population Growth Drives Demand

Kansas City’s steady population growth is another factor supporting the robust housing market. Projections indicate a 3.4% increase in population by 2029, reaching approximately 2.93 million residents, and a 7% increase by 2034, surpassing 3 million residents. This demographic expansion ensures sustained demand in the housing market. So if you’ve been thinking of investing in Kansas City, now is the time!

Whether you’re looking to buy, sell or invest either on the Missouri or Kansas side of the state line, the 2025 real estate market forecast for Kansas City is looking bright for you. Healthy and balanced growth trajectory, construction growth, inventory growth – all these things should put Kansas City on your radar (if it’s not already). 

And why not make the journey with one of the top real estate teams in Kansas City? On average, our homes sell faster and for more money, and our buyers agents are some of the best negotiators you’ve seen. We are 20 years strong in the industry, and we’re not slowing down. 

Stay tuned for more updates on the Kansas City housing market!